An additional 1.4 million people will be forced into the higher rate of income
tax for the first time within four years, a study suggests.

Grant Thornton, the accountancy firm, says that if wages increase at the rate predicted by government economists there will be a record 5.5 million higher rate taxpayers by 2015.

Even if wages grow at a more conservative 2.5 per cent, more than 700,000 people will become higher or additional rate taxpayers in the same period.

At present, anyone earning more than £42,475 pays higher rate tax at 40 per cent, while those earning more than £150,000 pay additional rate tax at 50 per cent. The Chancellor announced a three-year freeze on tax thresholds last June. Mike Warburton, senior tax adviser at Grant Thornton, said the freeze, coupled with wage growth, would create twice as many higher rate taxpayers by 2015 as there were in 1997. "Lots of people who would not consider themselves rich are already paying higher rate tax and this is set to continue," he said.

He said he used figures on wage growth from the Government's Office of Budgetary Responsibility, but believed that the more conservative 2.5 per cent figure might be more appropriate. Middle ranking policemen and teachers, as well as senior nurses, face becoming higher rate taxpayers under these conditions.

A Treasury spokesman said the calculations were based on historic figures. "The Government has a commitment to making real terms increases in the personal allowance each year," he said.